The seller of a put option is transferring the risk:
A) of a price decrease of the stock to the buyer of the option.
B) of a price increase of the stock to the buyer of the option.
C) this statement is incorrect since options do not transfer risk.
D) this statement is incorrect since only sellers of call options are transferring risk.
Correct Answer:
Verified
Q55: There's a call option written for 100
Q56: There's a call option written for 100
Q57: With a call option, the option holder:
A)
Q58: A put option described as out of
Q59: Someone who purchases a call option is
Q61: Assume we have a stock currently worth
Q62: The intrinsic value of a call option:
A)
Q63: Interest-rate swaps are:
A) exchanges of equity securities
Q64: Considering a call option, if the price
Q65: The time value of the option can
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